Talisman in acquisition double
THE BOURSE WHISPERER: Diversified ASX-listed exploration play Talisman Mining has expanded its exploration portfolio by acquiring an 80 per cent interest in the Muddawerrie and Livingstone gold projects, located in Western Australia’s north-eastern Goldfields.
The Muddawerrie project, located 100 kilometres northwest of Meekatharra, contains two mineralised shear zones extending over a strike length of more than 16km within an Archaean greenstone belt.
The Livingstone project is located approximately 25km northwest of the Muddawerrie project.
It consists of three granted Exploration Licenses containing demonstrated gold endowment within the western extension of the Proterozoic aged Bryah Basin.
Talisman Mining managing director Gary Lethridge, said the acquisition was consistent with the company’s strategy of actively targeting quality exploration and business development opportunities in copper-gold, nickel and gold, and moving quickly to secure suitable projects as soon as they became available.
“These projects allow Talisman to expand and diversify its exploration portfolio with two gold- focused projects which we believe have significant potential to deliver near-term drilling opportunities,” Lethridge said in the company’s ASX announcement.
“The company is well structured with a capable and adequately sized exploration team that enables us to undertake evaluation of additional projects such as Muddawerrie and Livingstone while retaining a strong focus on ongoing drilling and exploration activities at our flagship Springfield copper-gold project.
“With exploration gathering momentum at Springfield following recent drilling success, it’s great to be able to broaden our commodity focus into gold.”
Talisman said exploration activities will be initiated at the projects during the second half of the year, subject to obtaining statutory approvals.
This activity will be conducted in parallel with ongoing drilling programs at the company’s flagship Springfield VMS copper-gold project in the Bryah Basin.
Under the terms of the acquisitions Talisman will acquire an 80% interest in the Muddawerrie and Livingstone projects for a combined consideration of 100,000 ordinary fully-paid Talisman shares.
The projects will be held in separate Joint Ventures between Talisman (80%) and Murchison Resources (20%), which will be managed and operated by Talisman.
The interest held by Murchison will be free-carried until a decision to mine is made, at which point Murchison may elect to contribute on a pro-rata basis to the joint venture.
Should Murchison not elect to contribute on a pro-rata basis at this time then it must transfer its 20% interest to Talisman in exchange for a 1% gross production royalty.
Murchison will retain the right to dilute in accordance with an industry standard formula should it elect to contribute on a pro-rata basis to the joint venture from the decision to mine.
Should Murchison’s interest fall below 5%, it must transfer all remaining equity to Talisman in exchange for a 1% gross production royalty.